Questions tagged [national-accounts]
Covers how National Accounts statistics should be interpreted, as well as information regarding how National Statistical Institutes compile these concepts. May also answer questions raised by the international statistical community on methodological best practice for these statistics.
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Can a financial institution's headquarters location misrepresent service sector GDP in other regions?
In calculating GDP using the output approach, can a financial institution's headquarters location misrepresent the service sector's contribution to GDP in other regions?
For example, imagine a ...
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Why are sales taxes added in the income approach to GDP
In the income approach to GDP:
Y = p + w + dep + ib.tax
where p, w, dep, and ib.tax are profits, wages, depreciation, and indirect business taxes respectively.
Profits and wages are straightforward, ...
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Confusion in the relationship between GNDI and GNI
GNDI- Gross National Disposable Income; GNI- Gross National Income
We know that GNDI = GNI + Net Current Transfers from ROW(rest of world).
What I don't understand is why is there no mention of direct ...
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Does it make sense to evaluate a country's debt in GDP based on PPP?
Consider a fictional country Gudzan-Tservijstan with a GDP of \$100bn USD, a total (public and private) debt of \$100bn USD, and a PPP conversion factor of 2.
Are there advantages to considering the ...
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Capital share of income and profit margins
The capital share of income is defined as gross operating surplus divided by nominal GDP. At the firm level, the profit margin is defined as profits divided by sales. Notwithstanding the fact that ...
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Looking for a guide to data at daily frequency or higher
I found that one of the most valuable parts of an economics education was learning about the available data and major surveys. The NIPAs and the Integrated Nstional Accounts (which I believe will ...
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Intermediate Consumption vs Savings-Investment in National Income/Expenditure Accounting
I am trying to fully understand the savings-investment identity; both the Y=C+I+G=C+S+T and inventory accumulation perspectives make sense to me, but I came up with two examples that are a bit ...
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In 'corrupt' countries, what proportion of government funds get spent on what they are allocated?
Are there any estimates across countries of the proportion of funds that actually get spent on what they're allocated to be spent on?1
Most OECD countries would probably have ratios close to 1:1, that ...
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Capital outflow from the US
There's a lot being discussed about investors from the US diverting capital to emerging markets in early 2022. Is there any official recording of capital outflow in the US, so we could tell how much ...
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Godley-Lavoie private bank model
Good evening everyone !
I'm currently reading Godley and Lavoie Monetary economics. It's really an awesome book, and I'm at the 7th chapter where they introduce private bank money. The model is very ...
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How to show the identity $I = S$ is valid in these applied cases?
Say we are in a closed economy where there is no government.
It is claimed that
$$I = S$$
is an accounting identity and so it's always valid.
I find it difficult to understand why this identity is ...
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Splitting GDP between population
When looking at the average incomes in a country it is necessary to distinguish between mean income and median income. Mean income tends to be distorted by high earners, so typically median income is ...
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Is there a source which informs the public of who is buying up newly issued U.S. Government debt?
Is there a list somewhere of who is buying the newly issued debt that will finance the American Rescue Plan (the $1.8 trillion stimulus package signed recently)? Of course, I have an idea of who owns ...
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Extracting Self-Employed Income from Mixed Income
I have access to a database with several variables containing data on compensation of employees. I am very interested in creating a variable similar to household income, where the income of the self-...
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Accounting for household work in the GDP
It is often told that domestic work is not included in the GDP estimates due to difficulty in measuring them. I wanted to know if there are any advances in measuring this, or any alternatives that ...
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Textbooks claim that the difference between GDP and GNP (or GNI) is about geography vs citizenship--is this correct?
Many textbooks claim that the difference between GDP and GNP is about geography vs citizenship. For example, Colander:
GDP is output produced within a country’s borders; GNP is output produced by a ...
user23101
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Is the rent we get from firms and households treated the same while calculating gdp [duplicate]
When we rent out our land to firm,they use that land to produce goods and services,so the money we earn is a factor income but my question is that when we rent out our land to people,who don't use it ...
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Difference between Income-Expenditure Identity and the Goods Market Equilibrium condition
Is there any difference between the Income-Expenditure Identity and the Goods Market Equilibrium condition. Both are $Y=C+I+G+NX$. If it is an identity, why do we solve for the equilibrium output? ...
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Treatment of natural disasters and wars in consumption of fixed capital
Assets destroyed by natural disasters and wars are not included in consumption of fixed capital (CFC) in the US NIPA or the UN SNA.
Suppose though that the US decided to start including such asset ...
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How can I use national accounts to estimate individual carbon footprints?
It’s easy to compute per capita greenhouse gas emissions for a country. I’d like to determine the proportion of this that is under the control of individual consumers, in the sense that they can ...
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Calculating Real Budget Deficit, given Nominal Deficit and Inflation
I am doing this course on Coursera. In the context of explaining what Budget Deficits are, the professor puts up the following formula:
Real Deficit = Nominal Deficit - (Inflation*Total Debt)
My ...
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Basic question on S=I
Consider the identity:
$$
Y=C+I+G+X-M
$$
where $Y$ is defined either as value-added output, or income, or
total expenditure. Now, consider private individuals, who decide to
save money, as opposed to ...
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Current accounts as savings?
The book I'm reading shows that
$$ S= I +CA$$
where $S$ is savings, $I$ is investment, and $CA$ is the current accounts surplus.
The book then states "any domestic savings not absorbed by domestic ...
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In a social accounting matrix, what does Capital refer to?
In the process of building a social accounting matrix for Panama, I am trying to understand what capital refers to. The Panamanian National Accounts have tables on capital, but they describe gross ...
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When building a social accounting matrix, do you input domestic intermediate demand or total intermediate demand?
I have been trying to build a social accounting matrix (SAM) after building an input-output table (IOT). In the IOT, I had to distinguish between total intermediate demand (which includes import of ...
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Foreign exchange reserves in the government's budget constraint
The following is an excerpt from Montiel's Macroeconomics in Emerging Markets (1st edition):
B: Privately owned bonds
DC: Government bonds held by the central bank
sB*: Bonds held by foreigners, ...
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What is the economic strategy of the UK?
The UK has run a current account deficit running into billions of GBP per annum since the turn of the century.
If we apply the mindset of a household to the economy then clearly this would appear to ...
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Intermediate demand vs. Intermediate consumption
I am trying to understand what's the difference between intermediate consumption and intermediate demand. The context is the European System of Accounts, which says that intermediate demand is the ...
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please help describe a) what exactly is the Paradox of Profits , b) what is the argument of these papers exactly
here are 3 papers that discuss it.
it seems to me that the paradox is that, supposing a closed economy has money M raised through bank loans, then, while that economy can create goods and services and ...
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Where's a good place to find Information on Non-OCED countries?
I'm looking for Private Savings (Sp), Investment (I), Taxes (T), Government Spending (G) for India.
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Is it possible for Gross value added be negative on a company level?
In National Accounts production approach, can there situations whereby the Output of a company is far lower than the Intermediate consumption therefore the Value added is negative?
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How is labor demand measured?
For instance, in the introduction of this paper (first paragraph), talking about Figure 1, they say that labor demand is measured as the real wage bill normalized by population.
Is it common to ...
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Specific compensation and property income figures in the national accounts
I have highlighted four highlighted numbers in the UN System of National Accounts (p. 31, Table 2.13). My question is: What are these numbers?
My guesses:
6 = Compensation paid by foreign firms to ...
user20317
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Why do we consider purchase of house by households as investment?
According to what I have read, investment is the expenditure on creation of capital goods, which means that it is done by producers.
Then why do we treat buying of house by households as investment ...
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What is the Canonical Metric for Investment? (U.S.)
I'm currently taking a run-of-the-mill Intermediate Macro class and have coursework which asks to produce a vis that tracks U.S. Investment from 1970-2014. What is the salient/canonical National ...
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Relevance of government liabilities to GDP
After Malaysia's national debt was [reassessed][1], its totaled $250bn along with other government liabilities.
Now, I'm having trouble understanding the direct relevance of the ratio of goverment ...
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Difference between capital and current account
Why is an increase in foreign assets in a country different from us just selling foreigners our goods? As in why is one (inc. in assets) in capital account and the other (exports) in current account?
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Who gathers the production/use data that makes up GDP? And how?
I know that GDP can be calculated from the national accounts using data which says how much of each industry's output was bought by each other industry.
But how is this kind of supply/use data ...
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Is the BEA double counting benefits in Personal Income?
The BEA (US Bureau of Economic Analysis) that produces the GDP and GDI also prepares a summary of Personal Income for the nation.
In that it includes employer contributions for both private pensions ...
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why has the GDP per capita of Ireland grown of almost 30% between 2014 and 2015?
I came across these graphs today :
https://data.oecd.org/gdp/gross-domestic-product-gdp.htm
https://data.oecd.org/lprdty/gdp-per-hour-worked.htm
In both, something doesn't make sense for me: the ...
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UK GDP accounts for profits on sale of home
A house is built and sold to a family as their primary residence for £1000 in 2000. The purchase price is included in GDP for 2000. In 2001 the house is sold for £2500. The seller pays solicitors' and ...
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Domestic Demand, Private Consumption, Public Consumption, Gross Fixed Investment Relationship
I'm reading the IMF's January 2016 Report on Sweden's Economic Indicators, and the top section has the following:
Domestic Demand (2012) Percent Change: -0.6
Indented below are:
Private Consumption ...
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What Level of Government Debt to GDP Ratio is Sustainable?
I was reading that Japan has a debt to gdp ratio of 240pc and I cannot understand why this has not left the country "bankrupt"? From looking at this like an ordinary person this level would be ...
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What's the difference (if any) between "fixed assets" and "fixed capital" in the UN SNA?
From my reading of the UN System of National Accounts (2008 update), "fixed assets" and "fixed capital" seem to be completely synonymous. Yet strangely there seem to be these two different terms. So ...
user18
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International shipping services count as exports?
A Greek ship owner transports mouse traps from Albania to Japan, making every year ten million Euro in revenue and one million Euro in profits.
The total value of the mouse traps he transports every ...
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Why is GDP equal to the sum of revenues?
National Income can be expressed in two ways :
In can be derived from the GDP, as, roughly, a sum of "money spent" : GDP is equal to C + G + I + NX, where C, G, I and NX are houshold consumption, ...
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How is software treated in Gross Domestic Product calculations?
Is there a concise explanation of how software is treated in GDP calculations? It seems a bit complicated. I can only figure out part of the story:
For consumer purchases, I think all software ...
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Have the Greek bailouts been included in state budgets Eurozone members?
A lot of people (mainly journalists and politicians) say that Eurozone taxpayers pay for the Greek bailouts. On the other hand, a lot of economists say that those money have not been added in the ...
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Balance of payments abbreviations
I am trying to decipher certain abbreviations related to balance of payments. They are strange, and i have to admit i have no idea what did they mean furthermore i was not able to find anything ...
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Calculate GDP by three different methods
I have the following question to answer in my macroeconomics textbook. Steel producer makes steel worth 4000 out of which 0.25 is sold to machines producer and 0.75 of steel is being sold to the car ...
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